Millionaire Secures Lease for Trump's Manor amid Intensifying Tax Evasion Investigation
Billionaire Robert Smith Rents Luxury Property from Donald Trump Amid Tax Evasion Scrutiny
Robert Smith, a private-equity tycoon worth about $5 billion, rented a property from Donald Trump at Trump's Mar-a-Lago estate in Palm Beach, Florida, starting in late 2019. The 10,500-square-foot house, located at 1125 South Ocean Boulevard, was estimated to cost approximately $65,000 per month[1].
The Smith family occupied the property for about six months until March 11, 2020, when the Covid pandemic began. After that, they moved to Colorado and homeschooled their children for two years[2].
The unusual dynamic arose as Robert Smith, who was embroiled in a historic tax-evasion investigation, rented from the president. In September 2020, Hope Smith, Robert's wife, reported a missing 3.63-carat diamond ring worth $1.1 million from their Palm Beach residence[3].
Robert Smith signed a non-prosecution agreement with the Justice Department in October 2020, admitting to tax evasion and agreeing to pay $139 million[4]. Smith purchased two homes in North Palm Beach for $48 million a month after his wife reported the missing diamond ring[5].
Smith's representative stated that the investor needed a quick rental solution due to a previous one falling through because of black mold[6]. The reason for Smith's rental of 1125 South Ocean Boulevard from Trump is unclear[7].
During this time, Smith had a relationship with Ivanka Trump that continued into the pandemic, speaking weekly, according to the Washington Post[8]. Smith also spoke with Treasury Secretary Steven Mnuchin, at times daily, as they worked to ensure Covid relief funds went to underserved communities[9].
Robert Smith cooperated with investigators as they turned their sites to his billionaire business partner, Robert Brockman, who allegedly hid about $2 billion from tax authorities[10]. Brockman pleaded not guilty to 39 counts that included tax evasion, wire fraud, money laundering, conspiracy, and destruction of evidence. However, Brockman died at 81 about six months before his trial[11].
The Trump Organization is trying to figure out the size of its properties, and the U.S. Attorney David Anderson noted that Smith committed serious crimes but agreed to cooperate, potentially avoiding criminal charges[12]. After the pandemic began, the Smith family moved to Colorado, marking the end of their rental period at 1125 South Ocean Boulevard.
[1] New York Times [2] Washington Post [3] Palm Beach Daily News [4] Bloomberg [5] Bloomberg [6] Bloomberg [7] Bloomberg [8] Washington Post [9] Washington Post [10] Bloomberg [11] Bloomberg [12] Bloomberg
Robert Smith, a billionaire under tax evasion scrutiny, signed a lease for a luxury property located at 1125 South Ocean Boulevard, Mar-a-Lago, Palm Beach, Florida, from Donald Trump in late 2019. This rental arrangement took place amidst Smith's financial dealings, politics, and general news.
